British Land facing revolt

PROPERTY giant British Land, already under fire over how it is run, waved a red rag to a bull by giving a £350,000 cash bonus to chairman and managing director John Ritblat last year.

Scant detail in BL's annual report reveals only that bonuses are paid 'on the basis of the individual's contribution during the preceding year as well as individual and team performance'.

The award takes Ritblat's annual pay package above £1m. He owns £13.2m worth of shares, which last year paid £290,000 in dividends. He also has options showing a paper profit of £540,000.

BL has been repeatedly attacked for poor corporate governance. Next month, it faces an annual general meeting onslaught from dissident shareholder Laxey Partners, which has put forward proposals aimed at improving returns.

Laxey wants Ritblat to split his roles. Rupert Lea, a director at Laxey, said: 'We think bad corporate governance at British Land is reflected in the shares' discount to net asset value.' He claims that, since Laxey first took an interest in BL, the discount has narrowed from 40% to 25%.

Lea is concerned that BL's deputy chairman, Derek Higgs, is an adviser to UBS Warburg, which is also BL's broker. Higgs is heading a Government review on company boards. 'We don't feel the non-executives are independent or strong enough,' said Lea.

Ritblat, 66, up for re-election at the agm, has no contract with BL. Four other directors are up for re- election, including Cyril Metliss, 79, who wants to stand for another year.

Laxey wants BL to buy back shares and appoint professional outside managers to run its assets. BL has hit back, describing the resolutions as 'designed to make a fast buck', but has made no alternative proposals. It argues it has delivered compound shareholder returns of 15% a year over 10 years.